New Mexico Bill Seeks Health Insurance Coverage for Medical Marijuana
A bill under consideration in the New Mexico legislature could change how medical marijuana is covered by health insurance. House Bill 527 proposes that insurance policies cover the cost of medical cannabis, bringing it in line with other prescription medications.
The bill would require insurers to reimburse policyholders or authorized dispensaries for medical marijuana purchases, provided they are made through an approved retailer. The legislation defines an “adequate supply” of medical cannabis as enough for three months.
President and CEO of New Mexico marijuana dispensary operator Ultra Health, Duke Rodriguez
Currently, the bill has passed the House Health and Human Services Committee and is moving to the House Judiciary Committee for further review. Duke Rodriguez, president and CEO of New Mexico marijuana dispensary operator Ultra Health, expressed optimism about the bill’s prospects in the House but noted potential time constraints. New Mexico’s legislative sessions alternate between 30 and 60 days annually, and the current session ends on March 22. Rodriguez, in a report from AM Best, indicated that advancing the bill through the Senate in time for it to reach the governor’s desk would be the primary challenge. Rodriguez noted that this is the first time legislation addressing health insurance coverage for medical marijuana has been introduced in New Mexico, and its movement through committee represents an initial step.
Federal Hurdles
Outside of New Mexico, the federal classification of marijuana presents significant challenges for insurance coverage. Despite the legalization of medical marijuana in numerous states, the federal government still lists cannabis as a Schedule I controlled substance. This means the federal government does not recognize any accepted medical use and views it as having a high potential for abuse. Consequently, this classification hinders the ability of both public and private insurance companies to provide coverage for medical marijuana, even in states where it is legal.
A Pioneer State
However, some states have taken their own steps forward. New York, for instance, passed a bill requiring both private insurers and public health insurance programs to cover medical cannabis as they would any other prescription medication.
Workers’ Compensation and Legal Framework
While HB 527 is the first bill to pursue direct health insurance coverage for medical marijuana, New Mexico has previously worked on the issue through legal rulings. The New Mexico Supreme Court has ruled that workers’ compensation insurers must cover medical cannabis orders from physicians, which the state considers a recommendation rather than a prescription. Nationally, the National Council on Compensation Insurance reports that as more states legalize marijuana, most new legislation excludes its coverage under workers’ compensation.
However, New Mexico courts have determined that medical marijuana, like other medical services, must be exempt from gross receipts taxes, which function as a sales tax. Rodriguez believes the legal framework for reimbursement already exists and that the current bill seeks to codify it into law.
